Freight Carriers, Get Paid Faster

Trucking company owners and freight brokerages know that getting cash fast and prompt paying clients are crucial to the company’s well being. But, what can you do if you get a client that insists on paying their invoice in 30 days or more? How do you pay for fuel, drivers and maintanence while you wait to get paid?

In the past, the only option you had was to take the client and grit your teeth, or borrow from the bank.
However, there is an option that has been gaining popularity with the trucking community. It’s called freight bill factoring. Freight factoring eliminates the payment wait and gets your freight bills paid a lot faster. But, transportation factoring is very different than a loan. It works by selling your freight bills to a freight factoring company, who pays you for them (for a percentage) and then waits to get paid by your customers/freight brokers.

Freight Invoice factoring can be easy to use and works as follows:

You deliver the load and issue a freight bill
You sell the freight bill to the Freight Factoring Company, who pays you a first installment of the freight bill
You get immediate money while the factoring company waits
Once the Freight Bill Factoring company gets paid, any remaining reserves (less a small fee) are returned as your second installment

Freight Bill Factoring rates vary, but they go from 1.5% to 3% per 30 days depending on volume, duration of transactions and customer selection. A Freight Factoring line can be established in a little as 3 days, provided you have all your company documentation in order.